Following the company’s $713 million IPO on the Nasdaq, which priced significantly above the anticipated range, Astera Labs’ shares ended Wednesday’s trading session up more than 72%.
Located in Santa Clara, California Late Tuesday, Astera, a company that develops data center networking technology with applications in generative AI, set the price of its shares at $36 each, above the previously upwardly revised range of $32 to $34. The shares began at $52.56 apiece.
One of the biggest technological launches in recent months is represented by the offering.
In the sale, Astera sold 16.8 million shares, while current stockholders sold 3 million.With Wednesday’s closing price of $62.03, the company’s market value was around $10 billion. ALAB is the trade symbol for the corporation.
The highly acclaimed offering coincides with a surge in investor interest in AI technologies. Astera positioned itself as a supplier of essential enabling technologies even if it isn’t a generative AI firm. It describes itself as a provider of “semiconductor-based connectivity solutions that are purpose-built to unleash the full potential of cloud and AI infrastructure” in its IPO prospectus mission statement.
Additionally, a period of rapid revenue growth precedes the IPO. Astera reported $116 million in revenue for 2023, a 45% increase over the previous year.But the business hasn’t turned a profit yet. Astera reported a net loss of $26 million for 2023, compared to $58 million for the previous year.
Astera was founded in 2017 and has since secured $206 million in venture capital, including a $150 million Series D in late 2022. With 13.7% and 7% of the company’s shares, respectively, Sutter Hill Ventures and Fidelity are its biggest investors.